Pakistan Stock Market Rises on US-Iran Peace Hopes and Falling Oil Prices

ISLAMABAD: The Pakistan Stock Exchange (PSX) saw a modest recovery on Monday, with financial analysts attributing the positive momentum to hopes for de-escalation between the United States and Iran, alongside a decline in global oil prices.

According to brokerage firm Topline Securities, the benchmark KSE-100 Index opened strongly on Monday, climbing to an intraday high of 848 points before profit-taking moderated the gains.

The market closed at 171,153.16 points, representing an increase of 268.58 points, or 0.16 percent, at the close of trading.

“Falling oil prices provided relief to investors, alleviating concerns over inflationary pressures, the external account, and overall macroeconomic stability,” Topline Securities stated.

This positive development comes as oil prices dropped to their lowest level in over a week on Monday, driven by diplomatic hopes that tensions will ease as world leaders convene for the UN General Assembly in New York.

Brent crude futures and US West Texas Intermediate crude reached their lowest points since September 10 earlier in the session. Brent crude fell by $2.16, or 2.08 percent, to $101.71 per barrel by 05:13 a.m. Saudi time, following a 0.91 percent decline on Friday.

US West Texas Intermediate crude also experienced a significant drop, losing $2.15, or 2.14 percent, to trade at $98.15 per barrel, after falling by 1.58 percent in the previous session.

Topline Securities noted that trading activity remained robust, with a total volume of 692 million shares traded, representing a market value of approximately Rs201 billion ($72.6 million).

As a major importer of Middle Eastern fuel, Pakistan has been significantly impacted by the conflict. The US-Iran war has driven up global oil prices and disrupted fuel supplies since February, heavily affecting key maritime routes such as the Strait of Hormuz and the Bab al-Mandab Strait.

Source link